Blockchain : Technology of Future

What is Blockchain?

Blockchain is a Algorithm and Distributed Data Structure. It is a type of Distributed Ledger Technology (DLT) which are programmable to record and track anything that results some values.

i.e. Financial Transaction, Medical Records, Land Titles, etc.

Firstly in 2009 Satoshi Nakamoto introduced the Blockchain technology for the Bitcoin Transactions to be secure, fast and more relevant that the traditional way of financial transactions. Those days Blockchain was just a algorithm and distributed data structure for managing the electronic cash or which is called cryptocurrency. Blockchain manages bitcoin transactions without a central administrator among people who don’t know about each other.

How it works?

    As the name suggests answer of how it work is totally depends on the single block it contains. The block includes the Data , Hash of the block and Hash of the previous block.

• Data-

Data stored in the block depends upon the blockchain. As the Bitcoin Blockchain stores details of the transaction i.e. sender, receiver and the amount.

• Hash-

Hash is like a fingerprint which is unique for every block. This hash identifies the block and gives the details about the data stored in it. As when the block is created the hash is also been calculated. If the data inside the block is changed it causes changes in hash of the block too. When the hash is changed it becomes the new block. Hence we can con change the data from a particular block, we have to create a new block to record the changes with new hash and information about the change.

• Hash of previous block-

This is for the security reasons, as every block contains the hash of previous block so in this way all blocks are connected with each other as like a chain.

Frist block is special one that it does not connects to any block hence it is called as Genesis Block.

Suppose if someone tempers the block A from the network the hash of the block also changes so next block B can detect the problem that hash of A from A and Hash of A from B is different.

Following are the some important points in Blockchain-

1. Storage of data-

In Blockchain data is stored in batches, as per name each batch is called as block.

Each block is connected with each other forming a straight line in as per date and time.

This is why it is called Blockchain…

Due to this we can track our data easily.

2. Change in a particular block-

If you want to change the data in a particular block then instead of rewriting the block we create a new block regarding that the information about the change with the date and time when it is changed.

3. Decentralization and Distribution-

Blockchain is a Distributed Ledger Technology (DLT), that means it is a digital system for recording the data from one computer in which the data is stored in various computers of the network at the same time. Blockchain does not have the central data storage all data is stored distributedly.

4. Adding the Block-

Adding a new block to a blockchain network few things are required to do…

1. Cryptographic puzzles must be solved this creates the block
2. The computer which solves the puzzle shares the solution to all computers on the network, this is called proof of work.
3. Then the all networks verifies the proof of work if correct then the block is added to the network.

Due this three steps the block builds the trust among the network. So now other block can interact directly with data in real time.

So Blockchain is new Emerging Technology which has ability to change the future. Blockchain can solve many data security and storage problems.